A step-by-step guide to closing a financial year

Aneta STANIEWSKA
Accounting Semi-Senior at RSM Poland

The end of the year is the time of stocktaking and closing of the account books, therefore, it would be thoughtful to get ourselves well prepared for it. If you are in the middle of closing the financial year, please, acquaint yourself with the following schedule to check if you have already performed all your legal duties.

The schedule which I have prepared will help you close the financial year ending 31 December 2015 efficiently. It sets forth a list of operations and due dates related to the proceedings of closing of the financial year as indicated in the Accounting Act.

Lp.

Due date

Type of operation and its legal basis

IV quarter of 2015

Choosing an authority entitled to audit the financial statements for 2015 (Art. 66, par. 4 and 5 of the Accounting Act).

from 1 October 2015 to 15 January 2016

Stocktaking of assets specified in Art. 26, par. 3, p. 1 of the Accounting Act. The due date relates to the stocktaking by physical count or confirmation of the balance of incomings and outgoings.

As of the balance sheet date, i.e., 31 December 2015

Stocktaking of assets and liabilities (Art. 26 par. 1 of the Accounting Act), including, e.g., cash and cash equivalents, work in progress, materials, goods and finished products specified in Art. 17, par. 2, p. 4 of the Accounting Act, as much as stocktaking by the revision of assets and liabilities

As of the stocktaking date

Balances of assets under stocktaking.

In order to compare the actual data collected in the process of stocktaking with the account figures (Art. 18, par. 2 of the Accounting Act).

Before the closing of the account books for 2015, no later than until 26 March 2016

Comparison of the results of the stocktaking with the figures specified in the account books, explanation, settlement and inclusion in the account books for 2015 of discrepancies resulting from the stocktaking (under Art. 27 in accordance with Art. 24, par. 5, p. 2 of the Accounting Act).

No later than until the 85th day after the balance sheet date, i.e., until 26 March 2016

General ledger trial balance for 2015 (Art. 24 par. 5, p. 2 of the Accounting Act).

No later than within 3 months from the day ending the financial year, i.e., until 31 March 2016

Balance of all subsidiary ledger accounts, as of 31 December 2015 (Art. 18, par. 2 of the Accounting Act).

As of the day ending the financial year, no later than within 3 months from the day ending that year, i.e., until 31 March 2016

Closing of the account books for 2015 (Art. 12, par. 2, p. 1 of the Accounting Act).

State resulting from the closed account books for 2015 constituting a basis for the preparation of the annual financial statements for 2015.

No later than within 3 months from the balance sheet date, i.e., until 31 March 2016

Preparation of the annual financial statements for 2015 (Art. 45, par. 1 and Art. 52, par. 1 of the Accounting Act).

10.

After the preparation of the annual financial statements for 2015, no later than until 31 March 2016

Signing of the annual financial statements for 2015 (Art. 52, par. 2 of the Accounting Act).

The financial statements should be signed by the individual in charge of keeping the account books and by the manager of the undertaking, and if the undertaking is under the direction of a governing body composed of more than one member, by all members of the body, specifying the date of the signature.

11.

No later than within 3 months from the balance sheet date, i.e., until 31 March 2016

Preparation of a management report (Art. 45, par. 4 in relation to Art. 49, par. 1 of the Accounting Act).

The preparation of a management report is mandatory for limited liability companies, joint-stock companies, limited joint-stock partnerships, mutual insurance companies, mutual reinsurance companies, cooperatives and State-owned companies.

12.

No later than within 6 months from the balance sheet date, i.e., until 30 June 2016

Audit of the annual financial statements for 2015 (Art. 64, par. 1 in relation to Art. 53, par. 1 and Art. 68 of the Accounting Act).

Some undertakings, e.g., limited liability companies, joint-stock companies and cooperatives are obliged to make the opinion and report issued by a statutory auditor available to their shareholders or members. The audit must be completed no later than 15 days before their general meeting. In the case of other undertakings the audit must be completed before the due date of the approval of the financial statements for 2015.

13.

No later than 15 days before the general meeting of shareholders or meeting of cooperative members, i.e., until 15 June 2016

Making the annual financial statements for 2015 available. (Art. 68 of the Accounting Act).

Some undertakings, including limited liability companies., joint-stock companies and cooperatives, are obliged to make the financial statements for 2015 and management reports with the opinion and report issued by a statutory auditor (if they were subject to the audit obligation) available to their shareholders or members. Additionally, joint-stock companies should make the report of the supervisory board, audit commission or administrative body available to the shareholders.

14.

Within 6 months from the balance sheet date, i.e., no later than until 30 June 2016

The approval of the annual financial statements for 2015 by the approving authority (Art. 53, par. 1 of the Accounting Act).

15.

After the approval of the financial statements for 2015

The net financial result for 2015 (Art. 53, par. 3 and 4 of the Accounting Act).

16.

Within 10 days from the day of the approval of the financial statements for 2015

Submission of the annual financial statements for 2015 at the local tax office by corporate income tax payers (Art. 27, par. 2 of the Corporate Income Tax Act - J. L. of 2014, item 851, as amended)

17.

Within 15 days from the day of the approval of the financial statements, no later than until 15 July 2016

Final closing of the account books for 2015 (Art. 12, par. 4 and 5 of the Accounting Act).

It is understood as an irreversible exclusion of the possibility to make entries in the data files comprising the closed account books.

18.

Within 15 days from the day of the approval of the financial statements for 2015, no later than until 15 July 2016

Submission of the financial statements for 2015 and other documents at the National Court Register (Art. 69 of the Accounting Act).

If the financial statements for 2015 are not approved until 30 June 2016, they must be submitted at the National Court Register twice: those lacking approval until 15 July 2016, those approved: within 15 days after their approval.

19.

Within 15 days from the day of the approval of the financial statements for 2015, no later than until 15 July 2016

Submission of the financial statements for 2015 and other documents for publication (if the financial statements were subject to a mandatory audit):

a)	By cooperatives – in Monitor Spółdzielczy [Cooperative Gazette],
b)	By undertakings (including individuals), who do not submit financial statements at the National Court Register – in Monitor Sądowy I Gospodarczy [Court and Commercial Gazette] (Art. 70 of the Accounting Act).

Closing of the financial year is also related to a number of mandatory tax liabilities, not to be overlooked by an entrepreneur.

1.	Until 29 February 2016	Company which in 2015 was employing its employees on the basis of an employment contract, specific task contract or contract of mandate, must submit at the local tax office a PIT-4R form with the settlement of personal income tax advances paid during that year.
2.	Until 29 February 2016	Company which in 2015 paid remuneration up to the amount of PLN 200 monthly or paid contributions to the benefit of its former workers (pensioners), submits at the local tax office information (PIT-8AR form) on the amounts of flat-rate income tax transferred during that year.
3.	Until 29 February 2016	Submission of PIT-11, PIT-8C, PIT-R, IFT-1R/IFT-1R and PIT-40 returns at the local tax office.
4.	Until 31 March 2016	Submission of CIT-8 return with attached CIT-8/O and CIT D forms at the local tax office.

Closing of the financial year is a hard time for any accountant Therefore, it is worth the effort to prepare yourself thoroughly and, if such a need occurs, take advantage of the expertise of specialists who draw up annual financial statements in accordance with the agreed accounting standards and cooperate with the statutory auditor reviewing Client’s account books.